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European Commission might improve estimates on Romania's economic evolution in spring prognosis
Romania's economy coped with the Covid crisis better than expected, so that Brussels officials might improve estimates about this year's evolution in the spring prognosis of the European Commission, to be published in May, said Paolo Gentiloni, the European commissioner for economy.
He participated in an online conference on the reviewed draft National Plan of Recovery and Resilience (PNRR), an event organized by the Representative Office of the European Commission in Bucharest.
“In the winter prognosis I estimated a 5% drop of GDP, compared to 6.3% at EU level. Moreover, our prognosis was for an increase of 3.8% this year and 4% next year. That was before receiving data for quarter 4, 2020, which showed an evolution better that expected, while GDP dropped by 3.9% last year, an evolution better than our previous estimates,”the European official said.
In his opinion, the recovery of Romanian economy is on the right path. “We might review these figures when we present our spring prognosis in May, in case we have a National Plan for Recovery and Resilience agreed by the European Commission, and formally transmitted before the deadline for these provisions at the end of April,” Gentiloni said.
He pointed out that this is also the general deadline for states to send EC their plans for the Recovery and Resilience Fund. “However, our worries about the sustainability of public finances persist. Last year, deficit reached close to 10% of GDP, as a result of a pre-existing trend and the Covid 19 crisis. While economy recovers, bringing deficit on a descending path can be essential for the solidity of Romania's economic growth,” the commissioner considers.
According to him, the European Commission encourages Romania's government to continue having high ambitions.“In conclusion, Romania crossed a long path when it joined EU in 2007, despite the global financial crisis and Covid 19 crisis. Two crises in 13 years. The country's GDP is 50% higher than before EU accession, unemployment dropped and the number of people who risk poverty and social exclusion dropped from half of the population to a third. The last decade was characterized by a constant convergence to the rest of EU,” Gentiloni showed.
He showed that the Recovery and Resilience Fund can be the element which will define the next decade. “If we are careful to use the money from RRF wisely, I am confident that we will have a very bright future,” the Brussels official concluded.